Posted on: 25th Jul, 2009 04:41 pm
We filed Chapter 7 2008. Charged off credit cards. Tried to keep home. We have a first 130k and a second 120k. Two different banks. The value has dropped 90k. Due to financial strains we still cannot afford 2nd mtg. Since we have lost so much equity in our home AND cannot afford the second mortg payment, what should we do? I am wondering if we should walk away since we already ruined our credit with the Chapter 7 last year. I don't want to pay for a home that has lost so much value either. It also may help to know the first mortgage is not upside down. My home value is around 140k . Also we live in Florida where forclosures are rampat and the neighboring values are getting worse and worse.
Please advise on the best action to take. I don't know what to do here. There are so many conflicting answers.
thanks!
Please advise on the best action to take. I don't know what to do here. There are so many conflicting answers.
thanks!
I do know that if you walk away the banks can still sue you. You should have included it in your BK. Because with a BK it is a fresh start and you can rebuild and in a couple of years buy a home again. Someone I know did that and just walked away free and clear. Another person I know walked away and they went after her for the difference and in the end she and her husband had to file BK to include what the bank was suing them for. Good Luck